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The former Barclays Jes Staley will argue that the bank had a “clear understanding” of extending his links with Jeffrey Epstein when he sent a letter to regulators describing relationships as “non -close” in a historical opening on Monday.
Staley is trying to clear his name and overthrow a ban on life from high roles in the financial services industry established by the UK financial behavior authority in 2023. He withdrew as Barclays chief executive in 2021 after a FCA investigation into how he described his relationships with the financial and shameful sex. Staley did not draw the letter, but FCA decided that he had “recklessly” approved it.
In his opening statement, which was seen by the Financial Times, Staley said that he “explained sufficient details about his relationship with Mr. Epstein, in conversations with older executives and board directors in Barclays.. To provide them with a clear understanding that he has a close professional relationship with Mr Epstein, extending over many years.
“This was also one of the factors that led Barclays to keep faith in Mr. Staley after (FCA) opened and continued his investigation.” FCA launched its investigation in 2019.
Staley is seeking to oppose the claims made by FCA in its opening arguments that he had displayed a “pattern of behavior” in the constant abuse of his relationship with Epste to avoid damaging his career.
Former Barclays “chief” was aware of the danger his association with Mr. Epstei presented to his reputation and career, “he said in his arguments, which were seen by FT, adding that he sought to” minimize the proximity and duration of his relationship “.
FCA said that Staley “must have been aware” of the risk that a letter from Barclays to guard in October 2019 would have been misleading: this stated that Staley had confirmed “he did not have a close relationship” with Epstein, and that they last communicated “well before joining Barclays in 2015”.
FCA was sent to a cache by email by former Staley Jpmorgan Chase employee whom the regulator believed to show otherwise. This led him to begin the investigation that eventually led to Staley to be fined 1.8m and be given a prohibition of life.
“He was reckless in this danger in allowing deceptive statements to make authority, in circumstances when he was the only person in Barclays who actually knew the proximity of his relationship with Mr. Epstein and the duration of his contact with him,” FCA said in his opening arguments.
Staley has sought to establish his relationship with Epstein, who died in 2019 while waiting for the court for sex trafficking charges as “a business based” with some cases of social interaction.
“Mr. Epstein had the most prominent contact network,” Staley said in his opening statement. “The range of contacts and its impact is not only stunning, but it is probably without precedent.”
Staley also argued that there was a discrepancy between what Barclays wanted to convey with the letter – that Staley did not know or participate in Epstein’s crimes – and how FCA interpreted it.
“The letter was not thought, when it was drafted and approved, to determine the nature and history of Mr. Staley’s relationship with Mr. Epstein,” his opening statement reads. “Had it been its purpose, it would have been designed and approved in very different terms.”
FCA said that “he was not seeking to be ashamed of” Staley, nor was he “inviting the court to ascertain the involvement or knowledge of any misconduct by Mr Epstein”.
She added that she should be able to “rely on the authenticity and totality of the representations made to him and the opening of the discovery of the issues of which would reasonably expect to be notified.”
“This is an important case. . . Concerning the required behavior of individuals who hold high roles in the sector and give an example to staff at their firm, ”she said.
The two-week trial will attract the main figures of the city, including the Governor of the Bank of England, Andrew Bailey, as well as the former Staley colleagues in Barclays, who has long sought to distance himself from the episode.
